Fujifilm buys into bio with Merck acquisitions
pharmafile | March 2, 2011 | News story | Manufacturing and Production |Â Â Biomanufacturing, Fujifilm, Merck, Merck & Co, Merck/MSD Biomanufacturing Network, contract manufacturingÂ
Japanese photography and imaging company Fujifilm continued its diversification into other sectors with the acquisition of the Merck/MSD Biomanufacturing Network, a contract manufacturing organisation set up just a year ago by Merck & Co.
Fujifilm has been making forays into new business areas after encountering increasing competition for its core digital imaging operations, and has identified pharmaceuticals as a key growth sector.
“This acquisition provides an important addition to our pharmaceutical business with diverse capabilities and technical expertise in production of protein therapeutics,” commented Shigetaka Komori, the Japanese firm’s president and chief executive.
The financial terms of the transaction have not been disclosed, although newswire reports suggest it could be worth as much as $490 million.
Merck BioManufacturing Network, which is known as MSD BioManufacturing Network outside the US, provides process development and contract manufacturing services for recombinant proteins, vaccines and monoclonal antibodies.
It was set up last year via the combination of Avecia Biologics of the UK – which Merck acquired in late 2009 and renamed MSD Biologics – and Diosynth Biotechnology of the USA, formerly part of Schering-Plough which merged with Merck in 2009. The turnover of the business is estimated at around $160 million a year.
Financial terms of the transaction have not been disclosed, but under the terms of the deal Fujifilm will acquire all of the equity interests in both Diosynth and MSD Biologics, including manufacturing business support operations and workforce.
The sale to Fujifilm includes Diosynth’s manufacturing facility in Morrisville, North Carolina, and MSD Biologics’ plant in Billingham, UK. The deal is expected to close in April.
Fujifilm wants to achieve healthcare sales of 1 trillion yen ($12 billion) by 2019, and has been steadily acquiring businesses to help it achieve this.
Last year it set up a generic pharmaceutical joint venture with Mitsubishi Corp, and in 2008 it bought into the pharmaceutical ingredients’ business via the purchase of Toyama Chemical.
Phil Taylor
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